Henry Hub Natural Gas (NG)

Henry Hub Natural Gas (NG)

The reference mark of natural gas transported through pipelines in the United States. Henry Hub – a place on the gas pipeline in Louisiana (USA).

Natural gas is a quarter of energy consumption in the US, and futures contracts for natural gas on NYMEX is widely used as a benchmark for domestic electricity prices. The spread between futures contracts on natural gas and electricity futures allow you to manage price risk in the power market.

Natural gas – a mixture of gases generated in the earth by the decomposition of organic substances. Natural gas refers to minerals.

Huge reserves of natural gas have Russia (Urengoy field), Iran and most countries in the Persian Gulf, the United States, Canada. Of the European countries, it is worth noting the Netherlands and Norway. Among the former republics of the Soviet Union has large gas reserves, Turkmenistan, Azerbaijan and Kazakhstan (Karachaganak field).

The chemical composition and properties

The bulk of the natural gas is methane – from 92 to 98%. The composition of natural gas may also contain heavier hydrocarbons are: ethane, propane, butane, and other substances: water conduit, hydrogen sulfide, nitrogen, geliy.Chisty natural gas is colorless and odorless. To facilitate the natural gas transportation and storage it is liquefied by cooling at high pressure.

Demand for natural gas is influenced by the following factors: the weather, demographics, economic growth, competition in the fuel market, the volume of stocks in storage and export volumes. On the proposal affect the capacity of oil pipelines, the volume of stocks in storage, production volumes, natural phenomena, technical factors and the volume of imports.

Given such a variety of influencing factors, it is not surprising that, despite the steadily growing demand for natural gas prices are quite volatile. We recommend gas for active traders.

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